Want to Grow a Passive Income Snowball? Buy These 7 Elite Dividend Growth Stocks. – Yahoo Finance

Building Passive Income: 7 Elite Dividend Growth Stocks

Building passive income drives many investors toward dividend-paying stocks. Smart investors look beyond current yields to companies that consistently raise their payouts year after year, allowing a modest initial investment to grow into a substantial income stream over time.

The Sustainable Development Goals (SDGs)

1. Goal 1: No Poverty
2. Goal 2: Zero Hunger
3. Goal 3: Good Health and Well-being
4. Goal 4: Quality Education
5. Goal 5: Gender Equality
6. Goal 6: Clean Water and Sanitation
7. Goal 7: Affordable and Clean Energy
8. Goal 8: Decent Work and Economic Growth
9. Goal 9: Industry, Innovation, and Infrastructure
10. Goal 10: Reduced Inequalities
11. Goal 11: Sustainable Cities and Communities
12. Goal 12: Responsible Consumption and Production
13. Goal 13: Climate Action
14. Goal 14: Life Below Water
15. Goal 15: Life on Land
16. Goal 16: Peace, Justice, and Strong Institutions
17. Goal 17: Partnerships for the Goals

Dividend Growers: Essential Traits

• A conservative payout ratio ensures the dividend remains sustainable through various business cycles.
• A history of annual increases demonstrates financial strength and a commitment to shareholders.
• Strong business fundamentals protect the cash flows that fund these growing payments.

Companies Demonstrating Dividend Growth

Let’s examine seven companies that have demonstrated their ability to grow dividends reliably over time. From retail giants to tech leaders, each brings something unique to an income-focused portfolio.

TJX Companies (NYSE: TJX)

• Dividend growth rate: 10.7% annually over the past five years
• Payout ratio: 33.2%
• Current yield: 1.3%

UnitedHealth Group (NYSE: UNH)

• Dividend growth rate: 14.2% annually over the past five years
• Payout ratio: 51.7%
• Current yield: 1.49%

Microsoft (NASDAQ: MSFT)

• Dividend growth rate: 10.2% annually over the past five years
• Payout ratio: 24.8%
• Current yield: 0.78%

Texas Instruments (NASDAQ: TXN)

• Dividend growth rate: 11% annually over the past five years
• Payout ratio: 89%
• Current yield: 2.7%

Linde (NASDAQ: LIN)

• Dividend growth rate: 13.9% annually over the past five years
• Payout ratio: 40.5%
• Current yield: 1.16%

Danaher (NYSE: DHR)

• Dividend growth rate: 12% annually over the past five years
• Payout ratio: 24.9%
• Current yield: 0.41%

American Express (NYSE: AXP)

• Dividend growth rate: 11% annually over the past five years
• Payout ratio: 19.8%
• Current yield: 1.03%

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

“Double Down” Stock Recommendations

• Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $20,991!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $43,618!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $406,922!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

*Stock Advisor returns as of October 21, 2024

American Express is an advertising partner of The Ascent, a Motley Fool company. George Budwell has positions in Microsoft. The Motley Fool has positions in and recommends Danaher, Linde, Microsoft, and Texas Instruments. The Motley Fool recommends Tjx Companies and UnitedHealth Group and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Want to Grow a Passive Income Snowball? Buy These 7 Elite Dividend Growth Stocks. was originally published by The Motley Fool

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities

The article discusses the importance of building passive income through dividend-paying stocks, which is connected to SDG 8 as it promotes economic growth and decent work. It also mentions companies in the retail, healthcare, technology, and industrial sectors, which are relevant to SDG 9. Additionally, the article highlights the importance of reliable dividend growth, which can contribute to reducing inequalities (SDG 10) by providing income opportunities to investors.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.
• Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
• Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.

The article aligns with Target 8.5 by emphasizing the importance of building passive income through dividend-paying stocks, which can contribute to achieving full and productive employment. It also relates to Target 9.2 by discussing companies in various industries and their potential for sustainable growth. Furthermore, it indirectly supports Target 10.4 by highlighting the benefits of dividend growth for investors and the potential for reducing inequalities through income generation.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Dividend growth rate
• Payout ratio
• Projected earnings multiple

The article mentions the dividend growth rates of the companies, which can be used as an indicator to measure progress towards Target 8.5. A higher dividend growth rate indicates the company’s ability to generate sustainable income and potentially create employment opportunities. The payout ratio, mentioned for each company, can also serve as an indicator of financial stability and the company’s commitment to shareholders. The projected earnings multiple provides insight into the market valuation of the company and its potential for future growth, which is relevant to Target 9.2.

Table: SDGs, Targets, and Indicators

Source: finance.yahoo.com